Thursday, 28 May 2009

Thursday, 28 May 2009

Turning your idea into a business
Roan Lavery
Thursday, 28 May 2009

Thursday, 28 May 2009

The plunge
Thursday, 28 May 2009

Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Who needs a business model anyway?
- Dick Costello, Feedburner
“With this kind of traffic, we'll figure it out”
- John Doerr, Google Board
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Web app business models Advertising
34%
Payments
32%
Subscription
14%
Long game
6% 3rd party supported
14%
http://www.boxuk.com/blog/monetizing-your-web-app-business-models
Thursday, 28 May 2009

Free love
Thursday, 28 May 2009

The psychology of free
Thursday, 28 May 2009

Free love?
Critical mass
Advertising down
User costs
Bandwidth
Storage
Support
Scaling
Thursday, 28 May 2009

“The problem with free is that every time you double the size of
your database the cost of maintaining the site grows 6 fold. The
bigger you get as a free site the less money you make per visit
and the more it costs to service a visit.”
- Markus Frind
Thursday, 28 May 2009

Make ‘em pay
Thursday, 28 May 2009

Individual
~ x 10
Business
Thursday, 28 May 2009

Thursday, 28 May 2009

200 users @ £20 per month = £4,000 a month
= £48,000 a year
Thursday, 28 May 2009

200 users @ £20 per month = £4,000 a month
= £48,000 a year
4000 users @ £20 per month = £80,000 a month
= £960,000 a year
Thursday, 28 May 2009

200 users @ £20 per month = £4,000 a month
= £48,000 a year
4000 users @ £20 per month = £80,000 a month
= £960,000 a year
CHA CHING!!
Thursday, 28 May 2009

Topical
Geographical
Thursday, 28 May 2009

Topical Freelancers in service industries
Geographical
Thursday, 28 May 2009

Topical Freelancers in service industries
Geographical UK based (mostly)
Thursday, 28 May 2009

http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08
Thursday, 28 May 2009

Freemium
Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year
Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
4000 paying @ £20
Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
4000 paying @ £20 156,000 free
Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
4000 paying @ £20 156,000 free
£960,000 - £320,000 = £640,000
Thursday, 28 May 2009

March 2007
Thursday, 28 May 2009

May 2009
Thursday, 28 May 2009

May 2009
there it is!
Thursday, 28 May 2009

Freemium Subscription + free trial
Daily Sign ups Revenue
Thursday, 28 May 2009

Lessons learned
Find your niche audience
Charge people!
Be careful about what you give away
Creative with business models
Agile business development
Thursday, 28 May 2009

Thursday, 28 May 2009

Thursday, 28 May 2009

Any questions?
Roan Lavery
roan@freeagentcentral.com
follow: @roanlavery & @freeagentapp
Attribution
http://www.flickr.com/photos/guy_incognito/47600607/
http://www.flickr.com/photos/picsandpics/3395713506/
http://www.flickr.com/photos/digitalsextant/1806620459/
http://www.flickr.com/photos/15589195@N04/2128900152/
http://www.flickr.com/photos/drb62/457354545/
http://www.flickr.com/photos/greenshock/44793290/
http://www.flickr.com/photos/bebebeaux/2956060052/
http://www.flickr.com/photos/undaunted/488622130/
http://www.flickr.com/photos/ihtatho/627226315/
http://www.flickr.com/photos/ciordia/2241906999/
http://www.flickr.com/photos/lucy_baxter/3326890764/
Thursday, 28 May 2009